Rising Costs Scare Away European Apparel Factories In China
With China's gradual upgrading of industrial value chains and brands, a series of countries in the western periphery of Europe and nearby areas are becoming new fashion manufacturing centers.
The cost of purchasing from China is on the rise, but it is also cheap.
clothing
The factory's decision to favor "made in Morocco" or "made in Moldova" is not just derived from price factors.
"Of course, the cost of doing business in Turkey and Tunisia is higher than that in China, but in view of the rising wage levels in China, wages in Turkey and Tunisia are not so high.
For us, this is more convenient, because closer to Europe, we are more able to control quality problems.
Giovanni Bianchi, designer of La Perla (top brand in Italy), told Reuters.
La Perla has moved production from China to Turkey and Tunisia last year, and the land of purchase has also been changed from China to Portugal.
In the past 5 years, China's annual wages
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The average increase is 15%.
A French clothing trade company said its monthly salary in China's coastal areas has risen from 240 euros in 2005 to 400 euros in 2011.
In contrast, Tunisia's monthly salary is 160 euros, Morocco is 152 euros, Moldova is 200 euros.
In addition, the requirements imposed by Chinese factories are even more stringent.
Clothing enterprise
They need to think twice when working with them.
These garment companies say that Chinese manufacturers are constantly pressing them to expand the orders they have already decided, but the risks posed by poor sales and discounts may damage their brand image.
"In China, we have been unable to get the same price performance as before."
Selena Lopez, director of Jean Charl de Castall Ba Jacques's production business at French fashion house, said.
Liu Zhanhao, vice chairman of Hongkong Federation of industries, estimated that in the past two years, the cost of production in mainland China has increased by 20%-30%.
He said that thanks to the amazing supply chains and industrial clusters in the Pearl River Delta and other places, the basic manufacturing industry in mainland China is still very strong, but the competition is becoming increasingly fierce.
"Foreign investors no longer regard China as the only option. They may have other considerations.
In the past, they would only think that China was the only option, but now they have four or five choices.
They will take into account factors such as market proximity, labor costs and supply chain when making decisions. "
How far are these factories westward? "We have seen some enterprises build factories in Detroit," Liu Zhanhao said. "You will find that this will become a trend."
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